Good morning! Heres a lowdown on top macro triggers that may move market on January 17, 2019.
This report was compiled from agency feeds.RBI further simplifies ECB norms In an attempt to go one step ahead in ease of doing business, overseas borrowing norms have been simplified.
The Reserve Bank of India has rationalised overseas borrowing norms allowing a uniform borrowing limit of Rs 750 million a year across tenors.
It has also broadened scope of borrowers by allowing all entities that are eligible for foreign direct investment (FDI) to borrow through external commercial borrowing (ECB) route.
The government has been opening up this sector to attract capital flows ever since rupee started depreciating steeply vis-a-vis dollar since April 2018.
Angel tax not to haunt startups any moreKeen to promote entrepreneurship in country, government has liberalised conditions for startups and investors to shield them from what has been called angel tax.
Latest changes, notified on Wednesday, provide simpler mechanism for startups to claim exemption from this tax even for past investments, including to startups incorporated before April 2016, cut-off date for incentive under startup policy announced by government.Local sourcing of gear for new power projects mustUpcoming coal-fired and hydropower stations and transmission lines will have to purchase equipment locally, as per new guidelines issued by central government.
The norms, published on power ministrys website on Tuesday, will apply to power plants and transmission lines being set up by government-owned firms as well as private projects being funded by state-run Power Finance Corp and Rural Electrification Corp.
Record US crude production weighs on oil pricesOil prices dipped on Thursday as US crude production quickly approached an unprecedented 12 million barrels per day (bpd) just as worries about weakening demand emerge.
US West Texas Intermediate (WTI) crude futures CLc1 were at $52 per barrel at 0140 GMT, down 31 cents, or 0.6%, from their last settlement.
International Brent crude oil futures LCOc1 were down 34 cents, or 0.6%, at $60.98 per barrel.MNCs in a fix over dual tax noticesThe income tax department has started issuing two sets of tax demand notices to one company, a move that has stumped multinationals already fighting transfer pricing cases, apart from potentially increasing their legal burden.
The second, protective notice gets triggered only if a company successfully contests initial demand for tax payable under transfer pricing.
Industry experts said such notices have been issued in several transfer pricing cases, ranging from royalty payments to advertising, marketing and promotion (AMP) expenses.
While first tax demand may be based on AMP adjustment, protective notice could be on overall profitability of a company.May wins confidence vote, seeks to end Brexit stalemate Prime Minister Theresa May won a confidence vote in British parliament on Wednesday and then appealed to MPs from across political divide to come together to try to break impasse on a Brexit divorce agreement.
MPs voted 325 to 306 that they had confidence in Mays government, just 24 hours after handing her European Union withdrawal deal a crushing defeat that left Britains exit from bloc in disarray.EU worries lift dollar, pound steady The dollar rose against euro on Wednesday as worries about euro zone economy dented single currency, while sterling was steady after British Prime Minister Theresa Mays government won a no-confidence vote in parliament.
The euro was down 0.22% against dollar, last at $1.139, after being compressed in morning trade to a 12-day trough of $1.138.Govt to infuse Rs 6,000 cr in Exim Bank over 2 years The government Wednesday decided to recapitalise state-owned Exim Bank to tune of Rs 6,000 crore and double its authorised capital to Rs 20,000 crore.
The equity will be infused in two tranches -- Rs 4,500 crore in 2018-19 and Rs 1,500 crore in 2019-20, Railway Minister Piyush Goyal told reporters after Cabinet meeting in New Delhi.
Exim Bank serves as a growth engine for industries and small and medium enterprises through a wide range of products and services.
Delhi HC stays demand on HUL by NAAThe Delhi High Court has stayed demand of Rs 462 crore, made on HUL by National Anti-profiteering Authority (NAA) that claimed consumer goods giant benefited by not passing on gains from lower goods and services tax (GST) to consumers.
The court while staying penalty, has directed NAA that no coercive action be taken, and no penalty proceedings be continued against HUL until final determination of matter in court.
POLICIES MOREJohn Bogle, whose familys struggles during Great Depression led him to pioneer low-cost investing and to found Vanguard Group, now worlds biggest mutual fund firm, died on Wednesday at age of 89.Indra Nooyi is among candidates being considered by White House to head World Bank after India-born former PepsiCo CEO's name was floated by Ivanka Trump, president's influential daughter, a top American daily reported.
India has committed to purchase $5 billion worth of oil and gas from US per annum and $18 billion worth of defence equipment that are under implementation, a top Indian diplomat here said, highlighting growing bilateral trade cooperation.
Your income-tax return may get processed in a day instead of 63 days now, making refunds more expeditious, after a proposed integrated e-filing and Centralised Processing Centre 2.0 goes live.
The Union cabinet has sanctioned a 4,241.97-crore project that seeks to make tax filing and refunds speedier.
Infosys, which was lowest bidder, has been selected as IT service provider for project.TOP VIDEOOne has to live through volatility and changing strategies do not work: Manish SonthaliaTOP QUOTE'Five years from now, we want to be 70% retail and 30% wholesale bank'FUNDAMENTALSRupee down: The rupee weakened further by 19 paise Wednesday to close at 71.24 against US dollar amid a strengthening greenback and fresh capital outflows.
10-yr bond yields up: India 10-year bonds' yields rose 0.09% to 7.56% on Wednesday from 7.47% in previous trading session, according to RBI data.Call rate: The overnight call money rate weighted average was 6.42% on Wednesday, according to RBI data.
It moved in a range of 5.00-6.55%.